and many more. On June 30th, 2026, we had $35.6 million in cash on hand, no bank debt outstanding, and cash availability of $20.4 million under our revolving credit facility. Our day sales outstanding on June 30th, 2026, totaled 61 days, which is above our DSO measurement a year ago. During the second quarter of 2026, we did not repossess any shares of MassTech common stock. and as a result, as of 30th June, 2026, the entire $5 million remains available under the SHARE repurchase program. Operator, this concludes our prepared remarks. We will now open the line for questions.

At this time, I would like to remind everyone in order to ask a question, please press star then the number one on your telephone keypad. We will pause for a moment to compile the Q&A roster. And your first question is from the line of Lisa Thompson with Zacks Investment Research. Please go ahead.

Good morning. I'm glad to see all the progress. I was wondering if you could talk a little bit about this new partnership program. How do you define it? Like what is it actually?

Good morning, Lisa. This is Nirav.

I can take that. You know I would, so this is first of all a very very strategic program as you know that a year ago we already announced a partnership with Informatica but this particular program I would characterize it as early stage and I think it is important to be upfront about that. You know these four events that we really participated in terms of Google Next, Informatica World, Snowflake, Databricks are really about building and deepening relationship with the partners whose platforms our clients are standardizing on. And that is not something that turns into a signed deal overnight. So it takes time to really build that levels of trust. That said, we think that we would not have launched this formula or invested in a dedicated partnership ecosystem building function within our growth office if we did not see early signals worth building on. So we're seeing Right amount of conversations start to happen and some early relationship momentum, but I would like not to point too hard measurable pipeline numbers on this as yet. So we think that this partnership program that we have engaged on are very strategic for us to deepening our capabilities that allows our customers to really think of us as a full service provider as they engage more aggressively in their data modernization initiatives.

So is it kind of a sales sharing arrangement or staffing or what does one look like?

Yeah, yeah. So it's a little bit more sales motion. Think about it as something that is very critical for us because more and more clients choose their modernization efforts to go into some of these strategic partnership programs. And remember, these partners have hundreds, if not sometimes thousands of partners that they actually service and work together with. So this is a clear sales motion, and that's exactly why we have brought this under our growth office function, which is a commercial engine for us to continue to accelerate this.

Okay. And on another topic, Your billable rates went up quite a bit, which was very impressive. Do you see that continuing for the next few quarters as much as a dollar an hour?

Yeah. Hey, Lisa. Kannan here. Let me take that. So what the number reflects is, as you would see, revenue quality discipline. And we have been speaking about this over the last few quarters. We have been deliberately exiting lower margin non-strategic positions in favor of higher quality. And the bill rates are a byproduct, right? So as for whether it continues to move in this direction, I would not honestly get ahead of ourselves. Our focus remains on revenue quality, but we will continue to assess every opportunity on its own merits. and that's the intention as we move forward. So clearly our focus is on higher quality, higher margin engagements, Lisa.

Okay, so that'll continue for a few more quarters? It'll increase?

The intent is to have this, you know, that we will go for high margin, high value elements. And as you would see, at 92, we are at a fairly good position. We intend to keep it high. Again, it depends on the kind of opportunities that we get to sign up in the next few quarters.

Okay. My last question is, could you talk a little bit more about this convenience store deal? Can you just simplify for us normal people what exactly you're going to do for them and then how applicable that is to other companies?

Absolutely, Lisa. Nirav here. Let me just take a stab at that. So this is like you know think about it this way right like as enterprises prepare themselves to get themselves to be AI first and using and deploying AI all across their enterprise what they really have to really start thinking about is a layer of foundation and which is what we refer to as the AI foundation is very critical for them to really establish a sort of a layer that ensures things like trust, safety, governance. And so this engagement for us is very strategic in a way that we are starting off with establishing some level of that foundation along with the fact that we are now starting to work with this customer on a few areas of their use cases. One example that you mentioned is the agent e-commerce. And this particular retailer is wanting to grow their revenues through agent e-commerce. As you know that historically almost everybody wrote their ways of commerce through online platforms like Amazon. but more and more the younger generations continue to really fully be on the GPT's and so how does this turn into a revenue opportunity for our clients and client is really engaging with us in helping them establish that agentic commerce to be the primary case that they want to really build with. So to simplify it, think about, you know, if people start to shop on chat GPTs and tropics of the world, how will customers like this one will benefit out of it? And so it requires the levels of foundation layer, but also equally important, It needs the necessary domain depth to understand how to integrate the systems and make it real for them.

Okay, that's great. And one last question is, what do bookings look like for this quarter?

You know, it was good. I would say strong bookings in the second quarter I think what's working is a combination of two things that is playing out well right so last quarter we won a strategic engagement with the leading healthcare provider and it was on the broader data modernization program this quarter we have actually backed it up with another strong bookings quarter with a strategic AI engagement with a large convenience store that Nirav just spoke of. So I would say two different parts to win, two strong quarters of bookings back to back. And we think that combination is a good sign that our capabilities are designating across multiple client types and archetypes for that matter. But it's been two good quarters on bookings though, Lisa, and we are very pleased about that.

All right, great. Thank you so much. That's all my questions.

Thanks, Lisa. Thanks, Lee. Your next question is from the line of Mark Riddick with Sidoti. Please go ahead. Hey, good morning. Good morning.

Hello. Wondering if we could touch a little bit on some of the, in your prepared remarks, you mentioned the spending shifts that you're seeing, particularly toward more on the innovative side and AI from customers. And I was wondering if you could talk a little bit about that shift, maybe either from a pacing perspective through the quarter and or the sources of it, whether it be Client Vertical Wise, Geography Wise, or the like.

Mark, I suppose you are referring to the investments we have made as part of the edge. Is that what you're referring to?

I think in your prepared remarks you were talking about what you're seeing from a client demand perspective. As far as spending shifts that you were seeing through the quarter, I was just sort of curious if you could spend a little more time on that.

Yeah, I can take that, Mark, appreciate that. Look, I think, I feel we talked about this idea that, you know, customers are really aggressively trying to rotate and we use the word rotate is essentially a terminology, you know, used by Zillow to say that, hey, there's a portion of your spend that historically was spend in what I call managing your legacy estates. is now going to be diverted to do a lot more AI, right? Now, you know, there are different numbers out there which says anywhere between 30 to 40% could actually rotate from the old to the new. And customers are really using that as a core mechanism to fund what I call their AI adoption and AI transitions. Because, you know, the macro conditions doesn't really allow A CIO or a technology leader to have disproportionately high levels of funding available. So it's almost like a self-funding approach. Now, what happens in this scenario is, you know, it is a little bit of a reflection of the fact that how much of your business is today servicing that legacy estate versus the new. And I think we feel particularly proud and good about the fact that most of our build that we have done is in two fundamental areas. One, we refer it as AI foundation. As you know that historically we've always done MDM work and we think we are now really modernizing that with this partner program that we have in place. So in essence, what we did is now morphing into what I call an AI foundation set of offerings. Plus, we are now disproportionately investing in building newer capabilities to sort of garner ourselves on more verticalized domain-led, use case-led AI, full AI stories. So if you really think about those two, I think we are playing into the new in many ways. And we feel that this rotation actually helps companies like us more favorably because, you know, we've certainly never been on large IT outsourcing deals, which are tending to be multi-year, three-year, five-year deals. which I think is seeing a level of compression by customers who are trying to find new dollars that they can invest back in AI. So that rotation is possibly going to be a little bit of a journey mark. I mean, it's something that we think is going to play out not just over a few quarters, but probably a few years. But it positions a company like us very strongly as we really play into the new and we capture more and more share of it.

Excellent.

And then I was wondering if you could talk a little bit as far as the bookings that you're seeing. Can you talk a little bit about what you're seeing from a standpoint of mix of new customers versus gaining share of wallet from existing customers and maybe how you see that playing out going forward?

Yeah. So, Mark, I really dig that. Actually, this quarter, we are very happy that we were able to close three new logos, right? In very different vertical domains that we have been playing. So while we do that, if you really look at our ability to renew contracts, that has been pretty successful as well. So with respect to renewals, with respect to new business that we are winning from, Existing business and new logos, we have been reasonably successful in this quarter. And as I said, with three new logos being signed up in one quarter, you know, which is also broad-based largely, I think we are scoring in all three fronts for that matter, Mark. Just to reiterate, I guess...

Sorry, I was just going to add one comment, Mark, to what Kannan just said, right? Look, almost half of our data and AI pipeline comes from global 2,000 customers. So the way you want to think about it is, you know, we are honestly, you know, the percentage itself is not as exciting as the quality of the projects. And I think what we are particularly feeling good about the fact is that you're not just winning new logos, but you're actually winning for the work that we have somewhat historically not known for. And so that actually gives you a position of strength. So in my opinion, I think I expect that our new logo contribution over the coming years to actually rise as we deeply further invest in our new capabilities. I think the healthy mix is starting to really emerge now where we are protecting everything that we do for our existing customers in growing and strengthening their relationships, but at the same time investing in what I call the growth office efforts to win new logos as an institutional engine. So that's why the hunting and farming needs to really work in tandem for us.

Excellent. Thank you very much. Once again, if you would like to ask a question, please press star then the number one on your telephone keypad. And at this time, there are no further questions. I will now turn the call back over to Nirav Patel for closing remarks.

Thank you, thank you, operator. If there are no further questions, I would like to thank you for joining our call today. We look forward to sharing our third quarter 2026 results with you in October.

Thank you all for joining the MassTech Digital second quarter 2026 earnings conference call. You may now disconnect.